Annual performance evaluations are one of the worst tools ever invented. They distract from real-time performance, they are often backward focused, and the objectives for next year are usually overtaken by events before the toner dries. Even worse, they can be completely demoralizing if they include surprise criticism.
On the other hand, (there is always another hand) annual evaluations can have some very positive effects. They provide an opportunity to praise and reward the Executive Director (ED) for work well-done and for successful programs. Since the ED’s performance is key to the organization’s overall performance, the annual review provides the trigger for a full board review of the organization’s strategy, programs, outcomes, and impacts.
The review is often required by the by-laws or policy. The review is a key part of the due diligence function of the board. You cannot realistically get around it, and you can’t delegate it to the staff. You, as Board Chair, must do it yourself or lead a small evaluation committee.
The ED should see no surprises in his / her review. You, the Board Chair, should be holding one-on-one discussions at least monthly, where expectations and performance are discussed. I usually hold these about a week before the board meeting, as part of the meeting planning.
The Process
The evaluation process starts with a good job description and a clear strategic plan, implemented with a budget and annual operating plan.
The rest of the process depends on the situation. Some boards will want the you to handle it while others will form a committee. Some will survey the board. Some will survey those who report to the ED. Some will survey the clients. Some will survey ED’s at other organizations.
There are lots of surveys available on the web. There are lots of evaluation templates available.
The most basic points are:
- What have you done?
- How well did you do it?
- What are the plans for the future?
The most common areas are budget performance, board support, performance toward annual goals, and movement toward strategic objectives. Every board will have their own view of other topics.
Once the evaluation is completed, it will then be reported to the whole board.
There are lots of other details, but instructions abound on the web.